AICPA CPA-Business Exam - Topic 2 Question 50 Discussion

Actual exam question for AICPA's CPA-Business exam

Question #: 50
Topic #: 2

A firm has daily cash receipts of $100,000. A bank has offered to reduce the collection time on the firm's deposits by two days for a monthly fee of $500. If money market rates are expected to average 6 percent during the year, the net annual benefit (loss) from having this service is:

A$3,000

B$12,000

C$6,000

D$(6,000)

Show Suggested Answer

Suggested Answer: C

Choice 'c' is correct. $6,000 net annual benefit from using a lockbox system.

by Raina at May 07, 2022, 05:07 PM

Limited Time Offer

25%

Off

Get Premium CPA-Business Questions as Interactive Web-Based Practice Test or PDF

Contribute your Thoughts:

Submit Cancel

Precious

5 months ago

Totally agree, $6,000 sounds right!

upvoted 0 times

...

Fannie

6 months ago

Wait, how does that even add up?

upvoted 0 times

...

Meaghan

6 months ago

I think the net benefit is $6,000.

upvoted 0 times

...

Kristeen

6 months ago

That fee seems low for a 2-day reduction!

upvoted 0 times

...

Joanne

6 months ago

Daily cash receipts are $100,000.

upvoted 0 times

...

Franchesca

6 months ago

Ah, I think I know what's going on. The post_max_size setting is probably too low, which would prevent the file from being uploaded. I'll make sure to check that.

upvoted 0 times

...

Novella

6 months ago

Okay, I think I've got this. Mentoring is all about personal and professional development, so I'm going to go with option A. It strengthens an individual's self-development, which seems like the most direct benefit.

upvoted 0 times

...

Otis

6 months ago

Hmm, I'm a bit unsure about this one. The options seem to cover different aspects of a job worth hierarchy, but I'm not totally clear on how they all fit together. I'll have to think this through carefully.

upvoted 0 times

...

Launa

6 months ago

This is a tricky one. I'm tempted to go with a slightly more conservative option like A, but I don't want to overcommit either. I'll need to carefully weigh the trade-offs before making a decision.

upvoted 0 times

...